StarTek (SRT) Reports Q3 Revenues Beat

StarTek (NYSE: SRT) reported Q3 EPS of ($0.32), versus ($0.09) reported last year. Revenue for the quarter came in at $151.5 million versus the consensus estimate of $66.4 million.

“During the quarter, our clients began to experience the benefit of our global reach and access to new markets, multi-lingual offerings and new digital solutions resulting from the Startek and Aegis combination,” said Lance Rosenzweig, president & global CEO of Startek. “We are ahead of plan from an integration perspective. Our post-merger integration team has already implemented several cost optimization initiatives that we expect to result in $12.5 million of annualized cost savings. All of this was accomplished in less than four months as a combined company.

“From a sales perspective, although we continue to face headwinds in the telecom vertical, we are experiencing strong momentum in our non-telecom verticals and have executed on several cross-sell opportunities, including a new geographic implementation with one of our largest strategic client partners. This momentum has been further enabled by a reorganization of our global sales team, which is now being led by our recently appointed Chief Revenue Officer, Joe Duryea.

“In addition to Joe, we’ve established our global executive team by appointing leaders from both organizations and all department heads have their immediate organizational structure in place.

“As we look ahead, we plan to continue our cost synergy initiatives into next year. We will also sharpen our focus to accelerate revenue growth across the globe, particularly in high-growth verticals such as technology, financial services, next generation retail, healthcare and travel. The foundation for our success is nearly set, and we continue to expect synergies, revenue growth and operating efficiencies following our recent business combination to add $30 million of adjusted EBITDA* over the next three years.”

For earnings history and earnings-related data on StarTek (SRT) click here.

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